RealTime IT News

Cisco, Fed On Deck

Tuesday will be an eventful day for the financial markets, with the Federal Reserve and Cisco Systems taking center stage.

Torn between evidence of an economic slowdown and persistent inflation pressures, the Federal Reserve is expected to leave interest rates unchanged for the first time since May 2004. However, inflation pressures remain strong enough to leave the door open for the Fed to continue its two-year rate-hike campaign, making it one of the toughest Fed policy meetings to call in recent years.

Cisco will report its quarterly results after the close. Analysts expect a solid quarter from Cisco, with contributions from Scientific-Atlanta and strength in the commercial and service provider markets, although enterprise sales remain a question mark.

Cisco is expected to report earnings of 28 cents a share, up 3 cents from the year-ago quarter, on sales of $7.92 billion.

Stocks declined Monday after a BP pipeline shutdown threatened oil supplies.

Andrew jumped on a buyout offer from CommScope .

En Pointe soared on its results.

After the close, Priceline surged on its results, and Google rose on a search deal with MySpace.

The Nasdaq lost 12 to 2072, the S&P 500 declined 3 to 1275, and the Dow lost 21 to 11,219. Volume declined to 2.05 billion shares on the NYSE, and 1.48 billion on the Nasdaq. Decliners led 20-12 on the NYSE, and 19-10 on the Nasdaq. Downside volume was 63% on the NYSE, and 74% on the Nasdaq. New highs-new lows were 68-80 on the NYSE, and 45-133 on the Nasdaq.